Indicator definition

Final Renewable Energy Consumption is the amount of renewable energy consumed in the member states with actual and normalised hydro and wind power generation and the share in the total final energy consumption. The final renewable energy consumption is composed of renewable energy for heat, renewable energy for electricity and the use of biofuels in transport

The indicator is developed for measuring the contribution to the 2020 objectives on renewable energy for the EU-27. The Directive 2009/28/EC establishes an overall EU binding target of a 20 % share of renewable energy sources in energy consumption, as well as binding national targets by 2020 in line with the overall target. The overall share of renewable energy in the final energy consumption[1] includes consumption of electricity and heat from renewable energy sources as well as biofuels consumption.

[1] Final Renewable Energy Consumption is the amount of renewable energy consumed in the member states with actual and normalised 15-year hydro power generation and 4-year wind and the share in the total final energy consumption. Due to this constraints, normalized data are only available from 2004 to 2009.

Units

Key policy question: How rapidly are renewable technologies being implemented in Europe?

Key messages

The share of renewable energy in final energy consumption in the EU-27 reached 12.5% in 2010 representing 60% of the Europe 2020 target (20%). Renewable energies represented in 2010, 14.3% of total final heat consumption, 19.6% of electricity consumption and 4.7% of transport fuels consumption.

Share of renewable energy to final energy consumption

Note:The share of renewable energy in final energy consumption in the EU-27

Key assessment

Key assessment: penetration of renewable energy in final energy consumption

In the EU-27, renewables accounted for 12.5% of final energy consumption[1] in 2010 compared to 8.5% in 2005[2], representing nearly 60% of the 2020 target (see Figure 2). Renewable energy consumption increased rapidly from 2005 to 2009, at an average rate of 5.9%/year. In 2010, the progression was even faster and reached 10.4%. As total final energy consumption decreased by 0.7%/year between 2005 and 2009 and only grew by 3.7% in 2010, the share of renewable increased by almost 4 % between 2005 and 2010, from 8.5% to 12.5%.

The fastest progression in the share of renewable energy in final energy consumption between 2005 and 2010 is observed in Sweden (+7.3%), followed by Estonia (+6.9%), Austria (+6.4%) and Romania (6.1%). Most of EU countries proposes financial (subsidies/ soft loans for energy efficiency investments / equipment) or fiscal incentives (tax reduction for energy/CO2 efficient equipment/investments, tax credit /deduction) to promote renewables, especially in the household sector[3]. For renewable electricity, most countries have implemented feed-in tariff and/or green certificates to increase the electricity production from renewables (see below). The EU Directive 2009/28/EC provides also for three cooperation mechanisms that will allow Member States to achieve their national RES target in 2020 (see “policy targets” part). In 2012, feed in tariffs decreased significantly in several EU countries such as UK, Spain, Italy, France or Germany. Spain has temporarily closed in 2012 the nation's feed-in tariff program, including FiTs for solar photovoltaic (PV) and concentrating solar power (CSP) generation, to new applicants.In Italy, France and more recently Germany have announced a decrease of their Feed-In-Tariff for solar PV (around 20-30% in Germany depending on the facilities, around 4.5% in France for the second quarter of 2012).

In 2010, electricity generation from renewable sources[4] contributed 19.6% to total EU-27 electricity generation (14.1% in 2004). There is a large variation between countries in Europe: less than 1.5% in Cyprus or Malta to 65.5% in Austria up to 97.3% in Norway.

In 2010 renewable energy for heating and cooling accounted for 14.3% of total energy used for heating and cooling (9.6% in 2004). Increasing demand in industry as well as in residential and services contributed to this growth.

The share of renewable energy in final energy consumption[5] across non-EU EEA countries in 2010 was higher than in the EU-27 (around 22%). The higher number for these countries is linked to the high share of hydroelectricity in Norway, (61.1 %.including other renewable).

In 2010, renewable heat accounted for 14.3% of total final heat consumption. Between 1990 and 2010, the amount of heat produced from direct use of biomass was 65 Mtoe, representing 44.2% of the final renewable energy consumption. Heat production from large biomass CHP and heat plants[6] was 11.6 Mtoe, representing a threefold increase since 1990. In 2010, it accounted for 7.9% of the final renewable energy consumption. The main producers of biomass-derived heat are Sweden (31%), Germany (15%), Finland (14%), Denmark (13%) and Austria (7%), which together accounted for around 80 % of the total biomass use for heat production in CHP and heat plants in 2010.

Between 1990 and 2010, renewable heat consumption in EU-27 increased by 65% (i.e. 2.5%/year) in the industry sector and by 76% (i.e. 2.9%/year) in other sectors (households, services, etc). Sweden, Germany and Finland are the largest users of renewable heat in industry, accounting for around 50% of total EU-27 industrial consumption of renewable heat in 2010. Due to the presence of a large pulp and paper industry, Finland and Sweden have a large resource of black liquors which is used to produce industrial heat. France, Germany and Turkey are among the countries with the highest consumption of renewable heat in other sectors (households, services, etc) in EEA countries. Germany, Romania and Italy contributed the most to the absolute growth in the consumption of renewable heat in the other sectors. Turkey showed a large decline in the use of renewables for heat production in the other sectors between 1990 and 2010 (-19.3 %); this is mainly due to a transition from wood fuelled domestic heating systems to gas and district heating.

In 2010 the share of renewable (biofuels/bioliquids) in all modes of transport reached 4.7% in the EU-27 (1% in 2004).The share of biofuels in the energy consumption of road transport in the European Union stood at 4.7% in 2010, which is a little more than one percentage point short of the 2003 biofuel directive target for a 5.75% incorporation rate in 2010[7]. The progression in the penetration of biofuels has been lower in 2010 than in the years before (+0.5 point compared to 1 point in 2009 and 2008). In 2010, only five countries have exceeded the 2010 target: Slovakia with 8.2%, followed by Austria (6.6%), Poland (6.4%), Germany (6.2%) and France (6.1%). In 2010, Germany was by far the largest consumer of biofuels, accounting for 22 % of total biofuels consumption in the EU-27, followed by France with 18%, then by Spain and Italy (11% each). However, in Germany, consumption of biofuels has been decreasing significantly between 2006 and 2008 in volume (-26%) and only increased moderately since then (+15%): this is mainly due to changes in support policy (reduced tax exemptions for biofuels and introduction of a quota with a level lower than expected). For the EU as a whole, the future consumption of biofuels will depend on policy developments, but also on external factors such as the increase in oil prices and the worldwide availability of biofuels.

[1] Gross final consumption of energy is defined in Directive 2009/28/EC on renewable sources as energy commodities delivered for energy purposes to final consumers (industry, transport, households, services, agriculture, forestry and fisheries), including the consumption of electricity and heat by the energy branch for electricity and heat production and including losses of electricity and heat in distribution and transmission.

[7] It should be pointed out that the 5.75% target is in force until 1st January 2012 and those countries that have underperformed in 2010 still have another year to meet the directive’s demands. After that deadline, the target will be replaced by the specific target in the new renewable energies directive of 10% renewables share in final transport energy consumption for 2020. Biofuel should cover 90% of this 10-year objective, which includes the renewable electricity share used in transports.

Specific policy question: Answer to unknown question

Specific assessment

Data sources

Justification for indicator selection

Electricity and heat produced from renewable energy sources are generally considered more environmentally benign than other sources. Replacing part of the traditional transport fuels with biofuels could also have a positive environmental impact (e.g. reduced life-cycle GHG emissions), depending on which biomass is used, how and where it is grown and transported and which transformation technology is used. An increased share of renewable energy sources in final energy consumption is thus likely to reduce pressures on the environment and human health resulting from energy production.

This indicator is closely linked with ENER 29, and ENER 38

Scientific references:

No rationale references
available

Policy context and targets

Context description

Environmental context

The share of electricity consumption from renewable energy sources provides a broad indication of progress towards reducing the environmental impact of electricity consumption on the environment as renewable electricity is generally considered to have lower life-cycle environmental impact per unit of electricity produced than fossil-fuelled power plants. Increasing the share of renewables in electricity consumption will help the EU to reduce theGHG emissions from power generation but the overall impact will depend on which generation sources are being replaced in the energy system.

Emissions of air pollutants are also generally lower for renewable electricity production than for electricity produced from fossil fuels. The exception to this is the incineration of Municipal and Solid Waste (MSW), which due to high costs of separation, usually involves the combustion of some mixed wastes including materials contaminated with heavy metals. Emissions to the atmosphere from MSW incineration are subject to stringent regulations including tight controls on emissions of cadmium, mercury, and other such substances.

The exploitation of renewable energy sources may have negative impacts on landscapes, habitats and ecosystems, although many impacts can be minimised through careful site selection. Hydropower schemes in particular can have adverse impacts including flooding, disruption of ecosystems and hydrology, and socio-economic impacts if resettlement is required (for large hydro). Some solar photovoltaic schemes require relatively large quantities of heavy metals in their construction and geothermal energy can release pollutant gases carried by hot fluids if not properly controlled. Wind turbines can have visual impacts on the areas in which they are sited. Some types of biomass and biofuel crops have considerable land, water and agricultural input requirements such as fertilisers and pesticides.

Policy context

The Europe 2020 growth growth strategy aims to address shortcoming of the European economic model while creating coditions for smarter, more sustainable and inclusive growth. One of the headline targets include the objective of increasing the share of renewable energy in final energy consumption to 20% by 2020.

The Directive 2012/27/eu on energy efficiency establishes a common framework of measures for the promotion of energy efficiency within the European Union in order to achieve the headline target of 20% reduction in gross inland energy consumption. Member States are requested to set indicative targets. It is up to the Member states whether they base their targets on gross inland consumption, final energy consumption, primary or final energy savings or energy intensity. This directive has a direct impact on the renewables target since it aims to reduce the final energy consumption, thus making the renewables target easier to reach.

A Roadmap for moving to a competitive low carbon economy in 2050 (COM(2011) 112 final). Presents a roadmap for action in line with a 80-95% greenhouse gas emissions reduction by 2050.

On 15 December 2011, the European Commission adopted the Communication "Energy Roadmap 2050". The EU is committed to reducing greenhouse gas emissions to 80-95% below 1990 levels by 2050 in the context of necessary reductions by developed countries as a group. In the Energy Roadmap 2050 the Commission explores the challenges posed by delivering the EU's decarbonisation objective while at the same time ensuring security of energy supply and competitiveness.

On 10 November 2010, the European Commission has adopted the Communication "Energy 2020 - A strategy for competitive, sustainable and secure energy". The Communication defines the energy priorities for the next ten years and sets the actions to be taken in order to tackle the challenges of saving energy, achieving a market with competitive prizes and secure supplies, boosting technological leadership, and effectively negotiate with our international partners.

Council adopted on 6 April 2009 the climate-energy legislative package containing measures to fight climate change and promote renewable energy. This package is designed to achieve the EU's overall environmental target of a 20 % reduction in greenhouse gases and a 20 % share of renewable energy in the EU's total energy consumption by 2020.The climate action and renewable energy (CARE) package includes the following main policy documents:

Directive 2009/29/EC of the European parliament and of the Council amending directive 2003/87/ec so as to improve and extend the greenhouse gas emission allowance trading scheme of the community

Directive 2009/31/EC of the European parliament and of the Council on the geological storage of carbon dioxide

Directive 2009/28/EC of the European parliament and of the Council on the promotion of the use of energy from renewable sources

Community guidelines on state aid for environmental protection (2008/c 82/01)

Directive 2008/101/EC of the European parliament and of the Council amending directive 2003/87/ec so as to include aviation activities in the scheme for greenhouse gas Emission allowance trading within the community

Regulation (EC) no 443/2009 of the European parliament and of the Council setting emission performance standards for new passenger cars as part of the community’s integrated approach to reduce CO2 emissions from light-duty vehicles

Directive 2006/12/EC on waste requires all EU Member States to take the necessary measures to ensure that waste is treated and disposed of correctly, sets targets for re-use and recycling, and requires Member States to draw up binding national programmes for waste prevention.

Second Strategic Energy Review; COM(2008) 781 finalStrategic review on short, medium and long term targets on EU energy security.

Targets

Policy Targets

In 2009 the European Commission adopted a new directive on renewable energy[1] that set an ambitious target of 20% share of energy from renewable sources in final energy consumption by 2020 for the EU-27 and a 10% share of renewable energy in the transport sector.

In 2010, five countries almost reached their targets for 2020: Sweden and Romania are the closest with, 98% each of the target in 2010, followed by Estonia (97%), Austria (89%) and Bulgaria (86%) (see Figure 3).

According to a recent progress report of the EC (EU, 2011), progress in deploying renewable energy has been made across the EU in recent years. However, the report also highlights that there is still limited convergence in Member States' performance in developing renewable energy sources.

Further growth to achieve the 20% target will depend on further fine-tuning of existing policy frameworks, improved market conditions for grid access of renewable sources, fully implementing a guarantee of origin system to allow further development of renewable consumer market. In addition, a better, more integrated planning would be required to ensure not only high efficiency of investment and accelerated pace of development but also that the penetration of these sources takes place in a manner that would minimize the environmental impact within and outside the European Union.

Use of flexible mechanisms as provided by the Renewable Directive

The Renewable Energy Directive requires Member States to submit National Renewable Energy Action Plans (NREAPs)[2]; these (NREAPs) detail road maps of how each Member State expects to reach its legally binding 2020 target for the share of renewable energy in their final energy consumption and establish pathways for the development of renewable energy sources including bioenergy, creates cooperation mechanisms to help achieve the targets cost effectively and establishes sustainability criteria for biofuels.

Flexible and cooperative measures have been proposed into the directive in order to help countries achieve their targets in a cost-effective way without undermining market stability. The European target of 20% of RES share in final energy consumption by 2020 is build through an allocation of national targets based on a flat rate approach (same additional share for each country) adjusted to the Member State’s GDP. As the available RES varies across countries, the Directive provides for three cooperation mechanisms[3] that will allow Member States with low or expensive RES potential to achieve their national RES target in cooperation with other member states with higher RES potential and lower production costs. The three intra EU cooperation mechanisms are: statistical transfer, joint projects and join support schemes (as described below). Additionally Member State can also import RES electricity from third countries outside EU (“joint projects between Member States and third countries”).

Member States may agree on the statistical transfer of a specified amount of renewable energy between themselves. Renewable energy is thus virtually transferred to the RES statistics of another Member State, counting towards the national RES target of the latter Member State.

Joint projects are RES electricity or heating/cooling projects between two or several Member States; one Member State may provide financial support for a RES project in another country and count (part of) the project’s energy production towards its own target. They can also cooperate on any type of joint project relating to the production of renewable energy, involving private operators if they like.

In the case of joint support schemes, two or more Member States may decide, on a voluntary basis, to join or partly coordinate their national support schemes in order to help achieve their targets. In such cases, a certain amount of energy from renewable sources produced in the territory of one participating Member State may count towards the national overall target of another participating Member State.

According to the Member States forecasts in their NREAPs[4], ten countries expect to have a surplus in 2020 compared to their binding target. This surplus could be available to transfer to another Member State. The quantity is estimated at around 5.5 Mtoe, or around 2% of the total renewables needed in 2020. Five Member States expect to have a deficit (Belgium, Denmark, Italy, Luxembourg, Malta) in 2020 compared to their binding target for the share of renewable energy in their final energy consumption. These Member States thus require transfers from another Member State or third country, through the use of the Directive's cooperation mechanisms. The quantity amounts to around 2 Mtoe (<1% of the total renewable energy needed in 2020). According to these forecast documents, the total production of renewable energy would exceed the 20% target and reach 20.3% in 2020.

[1] Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of energy from renewable sources

Related policy documents

Regulation (ec) no 443/2009 of the European parliament and of the Council setting emission performance standards for new passenger cars as part of the community's integrated approach to reduce CO2 emissions from light-duty vehicles.

Directive 2008/101/ec of the European parliament and of the Council amending directive 2003/87/ec so as to include aviation activities in the scheme for greenhouse gas Emission allowance trading within the community

With its "Roadmap for moving to a competitive low-carbon economy in 2050" the European Commission is looking beyond these 2020 objectives and setting out a plan to meet the long-term target of reducing domestic emissions by 80 to 95% by mid-century as agreed by European Heads of State and governments. It shows how the sectors responsible for Europe's emissions - power generation, industry, transport, buildings and construction, as well as agriculture - can make the transition to a low-carbon economy over the coming decades.

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions: “Renewable Energy : a major player in the European energy market”

Promotion of the use of biofuels and other renewable fuels for transport. Directive 2003/30/EC of the European Parliament and of the Council of 8 May 2003 on the promotion of the use of biofuels and other renewable fuels for transport.

DIRECTIVE 2009/28/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 23 April 2009 on the promotion of the use of energy from renewable sources and amending and subsequently repealing Directives 2001/77/EC and 2003/30/EC

Methodology

Methodology for indicator calculation

Methodology of data manipulation: The share of renewable energy as a percentage of final energy consumption. The coding used (in the Eurostat database) and specific components of the indicator are:

Geographical coverage:The Agency had 32 member countries. These are the 27 European Union Member States and Turkey, plus Norway and Switzerland. Iceland and Liechtenstein are not covered in this factsheet due to lack of data for recent years.

Methodology for gap filling

No methodology for gap filling has been specified. Probably this info has been added together with indicator calculation.

Methodology references

No methodology references available.

Uncertainties

Methodology uncertainty

Indicator uncertainty (historic data): Biomass and wastes, as defined by Eurostat, cover organic, non-fossil material of biological origin, which may be used for heat production or electricity generation. They comprise wood and wood waste, biogas, municipal solid waste (MSW) and biofuels. MSW comprises biodegradable and non-biodegradable wastes produced by different sectors. Non-biodegradable municipal and solid wastes are not considered to be renewable, but current data availability does not allow the non-biodegradable content of wastes to be identified separately, except for industry.

The electricity produced as a result from hydropower storage systems is not classified as a renewable source of energy in terms of electricity production, but is part of the gross electricity consumption in a country. The hydro and wind generation is calculated as actual generation and normalised generation. Normalised generation is calculated using the weighted average load factor over the last 15 years for hydro and 5-year for wind.

The indicator measures the relative consumption of energy from renewable sources in total energy consumption for a particular country. The share of renewable energy could increase even if the actual energy consumption from renewable sources falls. Similarly, the share could fall despite an increase in energy consumption from renewable sources. CO2 emissions depend not on the share of renewables but on the total amount of energy consumed from fossil sources. Therefore, from an environmental point of view, attaining the 2020 target for the share of renewable energy does not necessarily imply that CO2 emissions from energy consumption will fall.

Electricity consumption within the national territory includes imports of electricity from neighbouring countries. It also excludes the electricity produced nationally but exported abroad. In some countries the contribution of electricity trade to total electricity consumption and the changes observed from year to year need to be looked at carefully when analysing trends in renewable electricity. Impacts on the (national) environment are also affected since emissions are accounted where the electricity is produced whereas consumption is accounted where the electricity is consumed.

Data sets uncertainty

Strengths and weaknesses (at data level):

Data have been traditionally compiled by Eurostat through the annual Joint Questionnaires, shared by Eurostat and the International Energy Agency, following a well established and harmonised methodology. Methodological information on the annual Joint Questionnaires and data compilation can be found in Eurostat's web page for metadata on energy statistics. http://epp.eurostat.ec.europa.eu/cache/ITY_SDDS/en/nrg_quant_esms.htm

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